The home you live in is one of the most valuable assets you have, which is why it makes so much sense to protect it. To do that, you need to have comprehensive home insurance in Lexington.
Sometimes, you’ll wonder about the cost of home insurance in Lexington because your needs may evolve over the years. The premiums you’ll pay varies depending on the specifics of your policy agreement. While your insurance provider can give you a recommended coverage limit, it’s still necessary to educate yourself. You have to consider the following factors to know how much home insurance you need:
Major Factors
Two of the main factors you need to keep in mind are the square footage of your home and the local construction costs. They will most likely impact your home rebuilding costs, which can give you an idea of how much insurance you need.
You can do a quick estimate of the coverage you need by multiplying the total square footage of the structure by the local construction cost. If you don’t know how much the building cost is, you can contact your real estate agent or your local builders’ association.
Other factors that impact the cost of home rebuilding include:
- Special features in your home—fireplace, arched windows, or exterior rim
- If the house or part of it was custom built
- Number of bathrooms and other rooms
- Type of exterior wall construction—veneer, brick or stone, or frame
- Type of roof and materials used
- Style of your home
- Other improvements you’ve made that added value to your home
Other Considerations
The things you own should also be taken into consideration as most insurance policies offer coverage for your possessions. You should assess the value of your belongings by conducting a home inventory. This will not only help you figure out how much coverage you need but also serve as a record if any of your stuff is stolen or damaged.
Homeowners’ insurance policies feature Additional Living Expenses (ALE), which pay the additional costs if you temporarily live somewhere else. Determine how much ALE insurance you need as it will cover everything from food to hotel expenses.
Talk to an Insurance Agent
To further understand how much coverage you need for your home insurance in Lexington, contact us at Nicholson Insurance. Our team can give you professional recommendations to help you decide. Protect your biggest asset now. Give us a call today.
